P20-41A (similar to) * Question Help The contribution margin income statement of Krazy Kustard Donuts for August 2018 follows: (Click the icon to view the contribution margin income statement.) Krazy Kustard sells four dozen plain donuts for every dozen custard-filled donuts. A dozen plain donuts sells for $4.00, with total variable cost of $1.60 per dozen. A dozen custard-filled donuts sells for $8.00, with total variable cost of $3.20 per dozen. Read the requirements. Requirement 1. Calculate the weighted-average contribution margin. (Round all currency amounts to the nearest cent.) Plain Filled Total Contribution margin per unit Data Table - X Requirements _ x X Contribution margin Krazy Kustard Donuts Contribution Margin Income Statement Month Ended August 31, 2018 Net Sales Revenue $ 126,000 Weighted-average contribution margin per unit Variable Costs: 1. Calculate the weighted average contribution margin. 2. Determine Krazy Kustard's monthly breakeven point in dozens of plain donuts and custard-filled donuts. Prove your answer by preparing a summary contribution margin income statement at the breakeven level of sales. Show only two categories of costs: variable and fixed. 3. Compute Krazy Kustard's margin of safety in dollars for August 2018. 4. Compute the degree of operating leverage for Krazy Kustard Donuts. Estimate the new operating income if total sales increase by 30%. (Round the degree of operating leverage to four decimal places and the final answer to the nearest dollar. Assume the sales mix remains unchanged.) 5. Prove your answer to Requirement 4 by preparing a contribution margin income statement with a 30% increase in total sales. (The sales mix remains unchanged.) Cost of Goods Sold $ 32,500 17,600 300 50.400 Selling Costs Administrative Costs Contribution Margin Fixed Costs: Selling Costs 75,600 32,400 10,800 Print Done 43,200 Administrative Costs $ 32.400 Operating Income Print Done